#10498 - Lease Interpretation Repair, Insurance And Service Charge Provisions - Advanced Property Law

ADVANCED PROPERTY LAW AND PRACTICE WORKSHOP 8 Revision Notes: Lease Interpretation: Repair, Insurance & Service Charge Provisions 2 Analysis! !"Does the [document] say what the clientLevelneeds/wants it to say? If no, what amendments would you recommend?" ! delete/amend existing clauses * * add new clauses * be able to justify your proposed amendments * react to the other sides amendments ! --------------------------------------------------------------------------------------------------------------------------- !Both parties to a lease are likely to employ different tactics when negotiating a lease as their respective conflicting interests are likely to be different, so it is crucial to negotiate for your client effectively. !A successful lease negotiation is about balancing the landlords desire to maintain control over the management of the property whilst also enabling the tenants to use the property without restriction. !You should always be looking to protect your client interests, but ultimately some comprises will have to be made. !Covenants that are expressed in the repair, insurance and service charge provisions can be: ! absolute covenants ! * qualified covenants (landlord's consent required) ! * fully qualified covenants (landlord's consent required (not to be unreasonably withheld)) * !For a tenants, the terms of the lease should accord with: ! the clients ! * the agreedinstructions terms with the landlord * ! * the tenants future plans for the premises ! ! Landlord: Differing Objectives The landlord wants a clean rental stream ('clear rent'), so all the cost or repairing, insuring and services are all passed on to the tenant(s) ! Tenant: The tenant wants to ensure that the premises are well maintained and insured but that any costs incurred are reasonable and it liability is as little as possible in the first instance